Which of the Following Statements Is CORRECT

question 90

Multiple Choice

Which of the following statements is CORRECT?

• A) Senior debt is debt that has been more recently issued,and in bankruptcy it is paid off after junior debt because the junior debt was issued first.
• B) A company's subordinated debt has less default risk than its senior debt.
• C) Convertible bonds generally have lower coupon rates than non-convertible bonds of similar default risk because they offer the possibility of capital gains.
• D) Junk bonds typically provide a lower yield to maturity than investment-grade bonds.
• E) A debenture is a secured bond that is backed by some or all of the firm's fixed assets.

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Definitions:

Entrepreneurship

The act of creating, developing, and managing a new business venture in order to profit while bearing any of its risks.

Idea Generation

The act of generating, expanding, and conveying innovative thoughts.

Opportunity Recognition

The ability to identify a potentially profitable or beneficial business idea, market niche, product, or service before others.

Entrepreneurs

Individuals who start, design, and manage a new business venture, often taking on greater than normal financial risks.